This time, I will post a summary of useful information for canceling a foreclosed bankbook.
What is Bank Seizure?
– A creditor restricts the right to use the debtor’s bankbook. 통장압류 해지기간
– If the debtor has unpaid debts, the creditor may apply for seizure of the bankbook through the court. 1분전
– If you apply for seizure of your bankbook, the use of the bankbook will be restricted for the debtor, making deposits and withdrawals impossible. This is one way for creditors to protect their rights if the debtor misbehaves, such as relocating money or not paying outstanding debts.
How to release bankbook seizure
– Since bank seizure is fatal for office workers who have to live on a monthly salary or business owners who have to manage money every month, it is possible to cancel bank account seizure for money of less than 1.85 million won to maintain a minimum livelihood.
– It is also possible to cancel the seizure of bankbooks using the personal rehabilitation system
▶ Termination of livelihood foreclosure
– If the balance of your bankbook is less than KRW 1.85 million, you can defend against seizure of your bankbook by applying for a change in the scope of anti-seizure bonds to the competent district court.
– In order to cancel the seizure of livelihood maintenance, documents such as the debtor’s bankbook balance certificate, deposit and withdrawal transaction history for the past year, and confirmation of notification of the seizure are required.
– In case of lack of income or difficulty in maintaining a livelihood, you can cancel the seizure of your bankbook by submitting documentary evidence to the court.
– It takes 3 days at the shortest and 2 weeks at the longest after the application for the result of the termination of the seizure of livelihood.
※ Required Documents
ID card
Pay stub, Confirmation of Eligibility for Employment Health Insurance
Long-term care insurance premium payment confirmation
National Pension Payment Confirmation
Basic living allowance, etc.
Tax certificate by subject of local tax
▶ Application for personal rehabilitation
– You can terminate the seizure of your bankbook through personal rehabilitation, and you must obtain a restraining order from the court for this.
– If a restraining order is issued, it can prevent creditors from seizing property, seizure of bankbooks, and debt collection.
– If your bank account is seized before you apply for personal rehabilitation, you must apply for a restraining order quickly.
※ Required Documents
application for release of seizure
Original copy of the seizure decision
A copy of the repayment plan approval decision
Original copy of confirmation certificate
A copy of the list of individual rehabilitation creditors
▶ Termination of bankruptcy seizure after bankruptcy waiver
– After applying for bankruptcy waiver, you can cancel the seizure of your bankbook.
– Submit the following documents to the court after the court has issued an exemption.
※ Required Documents
Application for release of seizure
bankruptcy decision
certificate of confirmation
disclaimer
Copy of list of creditors
Bond Seizure Decision
▶ Agreement with creditors
– If you pay off unpaid debts or partially repay debts through negotiations with creditors, and promise to continuously repay debts in the future, you can release the seizure of your bankbook.
Passbook Seizure Termination Procedure
The general procedure is as follows.
Review of submission of documents to the court
Send notice of termination to bank
Termination of bank account payment suspension
Passbook seizure release period
– If you apply for termination of livelihood foreclosure, it will usually be terminated as soon as 3 days or as long as 2 weeks after the application.
– If you have applied for the cancellation of bank account seizure through a personal rehabilitation or bankruptcy application, it takes about 1 to 2 weeks from the time you submit the application to the court to cancel the seizure.
Seized account cancellation fee
– The cost of canceling bank account seizure is known to range from 50,000 won to 300,000 won depending on the case.
Frequently Asked Questions
> If I pay the arrears, will the bank book seizure be automatically canceled?
: It’s not like that. If you have paid all of your debt repayment to the foreclosure creditor, it is possible to contact the creditor and apply for a foreclosure withdrawal.
> Is it possible to apply for cancellation of seizure of bankbook with special approval?
: If you have received special approval for repair, you can apply for termination of seizure of your bankbook when requesting termination of seizure to proceed with the dividend procedure.
> Is it possible to cancel the seizure of the bankbook when the Credit Recovery Commission debt adjustment is being repaid every month?
: Request for cancellation is possible only if the total amount of all accounts owned is less than KRW 1.85 million.